Vanguard Group Inc. Raises Stock Holdings in Constellation Brands Inc (NYSE:STZ)

Key Points

• Vanguard Group Inc. increased its holdings in Constellation Brands by 18.6% during the first quarter, owning a total of 18,417,604 shares valued at approximately $3.38 billion.
• Constellation Brands' latest earnings report revealed a 5.5% year-over-year revenue decline, with an EPS of $3.22 that fell short of analysts' expectations.
• The company's quarterly dividend of $1.02 per share will be paid on August 14th, representing an annualized yield of 2.4%, although it has a dividend payout ratio of -170.71%.

Vanguard Group Inc. increased its holdings in Constellation Brands Inc (NYSE:STZ - Free Report) by 18.6% in the first quarter, according to the company in its most recent Form 13F filing with the Securities & Exchange Commission. The firm owned 18,417,604 shares of the company's stock after purchasing an additional 2,882,817 shares during the period. Vanguard Group Inc. owned 10.35% of Constellation Brands worth $3,379,999,000 as of its most recent SEC filing.

A number of other hedge funds and other institutional investors have also made changes to their positions in the business. Minot DeBlois Advisors LLC acquired a new stake in Constellation Brands during the fourth quarter valued at approximately $29,000. Optiver Holding B.V. acquired a new stake in shares of Constellation Brands in the fourth quarter worth about $31,000. Laurel Wealth Advisors LLC bought a new position in shares of Constellation Brands in the first quarter worth about $32,000. Rakuten Securities Inc. increased its stake in shares of Constellation Brands by 805.0% in the first quarter. Rakuten Securities Inc. now owns 181 shares of the company's stock worth $33,000 after purchasing an additional 161 shares during the period. Finally, Fourth Dimension Wealth LLC bought a new position in Constellation Brands during the fourth quarter valued at about $44,000. Hedge funds and other institutional investors own 77.34% of the company's stock.

Wall Street Analysts Forecast Growth

Several research firms have recently weighed in on STZ. Needham & Company LLC upped their price objective on Constellation Brands from $195.00 to $200.00 and gave the company a "buy" rating in a research note on Thursday, July 3rd. JPMorgan Chase & Co. increased their target price on Constellation Brands from $170.00 to $182.00 and gave the stock a "neutral" rating in a report on Thursday, July 3rd. The Goldman Sachs Group set a $225.00 target price on shares of Constellation Brands and gave the company a "buy" rating in a research note on Friday, June 27th. Truist Financial upgraded shares of Constellation Brands from a "hold" rating to a "buy" rating and lifted their price target for the company from $190.00 to $215.00 in a research report on Wednesday, May 7th. Finally, Piper Sandler boosted their target price on shares of Constellation Brands from $165.00 to $170.00 and gave the stock a "neutral" rating in a research note on Friday, June 6th. Eleven analysts have rated the stock with a hold rating, thirteen have assigned a buy rating and one has issued a strong buy rating to the company. Based on data from MarketBeat, the stock currently has a consensus rating of "Moderate Buy" and a consensus target price of $213.74.

Constellation Brands Stock Performance

Shares of STZ traded down $2.50 during trading hours on Friday, reaching $170.72. 1,386,497 shares of the company's stock traded hands, compared to its average volume of 1,805,695. The business's fifty day simple moving average is $169.13 and its two-hundred day simple moving average is $176.81. Constellation Brands Inc has a twelve month low of $159.35 and a twelve month high of $261.06. The firm has a market capitalization of $30.10 billion, a price-to-earnings ratio of -71.43, a P/E/G ratio of 10.33 and a beta of 0.67. The company has a debt-to-equity ratio of 1.30, a current ratio of 1.07 and a quick ratio of 0.68.

Constellation Brands (NYSE:STZ - Get Free Report) last released its quarterly earnings results on Tuesday, July 1st. The company reported $3.22 earnings per share for the quarter, missing analysts' consensus estimates of $3.45 by ($0.23). The company had revenue of $2.52 billion during the quarter, compared to analyst estimates of $2.57 billion. Constellation Brands had a negative net margin of 4.11% and a positive return on equity of 31.41%. The company's revenue for the quarter was down 5.5% compared to the same quarter last year. During the same quarter last year, the business earned $3.57 EPS. Analysts predict that Constellation Brands Inc will post 13.5 earnings per share for the current year.

Constellation Brands Dividend Announcement

The business also recently declared a quarterly dividend, which will be paid on Thursday, August 14th. Shareholders of record on Wednesday, July 30th will be given a $1.02 dividend. This represents a $4.08 dividend on an annualized basis and a yield of 2.4%. The ex-dividend date is Wednesday, July 30th. Constellation Brands's dividend payout ratio is -170.71%.

Insiders Place Their Bets

In related news, EVP Samuel J. Glaetzer sold 3,150 shares of the company's stock in a transaction dated Tuesday, May 13th. The stock was sold at an average price of $188.54, for a total value of $593,901.00. Following the completion of the sale, the executive vice president owned 3,126 shares in the company, valued at approximately $589,376.04. This represents a 50.19% decrease in their ownership of the stock. The transaction was disclosed in a document filed with the SEC, which can be accessed through this link. Also, EVP James O. Bourdeau sold 821 shares of the stock in a transaction dated Monday, July 21st. The stock was sold at an average price of $169.00, for a total value of $138,749.00. Following the completion of the sale, the executive vice president owned 9,438 shares of the company's stock, valued at $1,595,022. This trade represents a 8.00% decrease in their ownership of the stock. The disclosure for this sale can be found here. Corporate insiders own 12.45% of the company's stock.

Constellation Brands Company Profile

Constellation Brands, Inc, together with its subsidiaries, produces, imports, markets, and sells beer, wine, and spirits in the United States, Canada, Mexico, New Zealand, and Italy. The company provides beer primarily under the Corona Extra, Corona Familiar, Corona Hard Seltzer, Corona Light, Corona Non-Alcoholic, Corona Premier, Corona Refresca, Modelo Especial, Modelo Chelada, Modelo Negra, Modelo Oro, Victoria, Vicky Chamoy, and Pacifico brands.